Post Office Card Account

Jenny Willott Excerpts

Tuesday 16th December 2014 Commons Chamber

[Steve Webb]

I am grateful to the Chair of the Work and Pensions Committee. We have not added features to the Post Office card account because, for example, adding direct debit means that the credit check threshold suddenly gets much more serious. Instinctively, I am with the hon. Lady on this. My approach would have been that the POCA is a good thing, so why should we not add nice things to it? We have not upgraded it, however, because one of its attractions is that people who have poor credit histories or who would struggle with some of the identity checks can be enabled to access it. In developing universal credit, my right hon. Friend the Work and Pensions Secretary is working with local authorities and the banking industry to look at different sorts of accounts, including, as the hon. Lady suggests, budgeting accounts. The basic bank accounts that were improved yesterday will be part of a suite. We intend that there should be the right sort of accounts for the right people.

[Jenny Willott (Cardiff Central) (LD)]

I am delighted by today’s news that the Post Office will be able to serve customers using the new POCA well into the future. As the Minister said, that will enable the Government to achieve their commitment to protecting the post office network, unlike the previous Labour Government, who closed thousands of branches in every single constituency across the entire country. How many customers does he estimate will access the new accounts, which will bring trade into these post office branches, and how many are unable to access bank accounts at the moment?

[Steve Webb]

I am grateful for the work that my hon. Friend has done on this. As she will recall, we met to discuss how we could deliver this contract when she was postal services Minister. About 4,000 people in her Cardiff constituency currently have Post Office card accounts, and they will welcome this announcement. She is right that we have to work out how we can develop and expand this in future. We are trying to make sure that we have the right accounts for the right people. The number of pensioners with these accounts will gradually decline. For people of working age, we want, where possible, financial inclusion and transactional accounts. Many people with POCAs do have other bank accounts—for various reasons, they hold both—but we will make sure that the most vulnerable people have access to their money at the post office.